W.R. Berkley Corp. sold off one of its real estate investments – a New York City office complex – at the end of 2020. The sale generated a $105 million pre-tax net gain, according to the commercial lines specialty insurer and reinsurer.
Berkley said the transaction would be counted in the 2020 fourth quarter, along with an approximately $52 million pre-tax increase in stockholders equity as a result of the accounting treatment required by the transaction’s structure.
With the COVID-19 pandemic, insurers and other corporations have actively explored reducing their corporate footprint. That’s not the case here. A spokesperson clarified the complex was an investment property only.
Berkley explained in the sale announcement that the sale is part of its “long-term strategy of investing for total return” so it can generate “superior long-term value” for shareholders even with the current low interest rate environment.
The company is scheduled to disclose its 2020 fourth quarter earnings on Jan. 26.
Source: W.R. Berkley
Topics Mergers & Acquisitions Property
Was this article valuable?
Here are more articles you may enjoy.
After Years of Pushing Rate Hikes, Florida’s Citizens Now Wants HO Rate Decrease 
Trump to Issue Order Creating National AI Rule 
Brookfield Targets Global Dominance in P/C Insurance Coverage 
California Again Delays Wildfire Protection Rules for Homes 
